Cost Segregation

Through our cost segregation studies, we work to uncover potential tax savings and increase cash flow through reclassification and depreciation of property. ETS provides a “Detailed Engineering” review as part of our reporting process and works seamlessly with the IRS and your CPA firm for minimal disruption to your business.

If you’re looking for ways to increase revenue for your business, Engineered Tax Services will show you how to take advantage of significant tax benefits.

What is Cost Segregation?

A cost segregation study is a federal income tax tool that increases your near term cash flow, in the form of a deferral, by utilizing shorter recovery periods to accelerate the return on capital from your investment in property. Whether newly constructed, purchased or renovated, the components of your building may be properly classified through a cost segregation study into shorter recovery periods for computing depreciation. The study carves out (into 5, 7, and 15 year lives) certain qualifying portions of your building that are normally buried in 39 or 27.5 year categories.

The following identifies what Engineered Tax Services will provide within your study:

Free – No Risk Initial Review

Evaluate your current tax status and future business plans to determine the applicability of a Cost Segregation Study specifically for your project

Visit the facility/project to determine and identify how the components and systems are utilized – as well as to document the systems and components

Provide a “Detailed Engineering” review of the assets including special purpose mechanical and electrical systems, decorative finishes, site improvements, and any process related to special purpose construction

Classify or reclassify each building component into the appropriate tax life as prescribed by IRS guidelines

Identify and allocate indirect costs to each asset

Complete a written report with the asset detail supporting the reclassifications and completion of the necessary tax form(s)

Do You Qualify?

Qualifying properties usually follow these parameters:

New Construction (placed in service within the past 5 years)

Purchase or Acquisition (within the past 5 years)

Over $500,000

Properties with large amounts of added features, high-end finishes, and components necessary to operate

Testimonials

(Our) Energy Tax Certification resulted in a $74,000 tax deduction, which meant about $20.000 actual cash back to us!

Jeffrey T. Wade, ADD Inc

You and your team did a tremendous job for us in terms of providing cost segregation and energy tax services. The tax benefits for us nationally were impressive, as were you services.

IKEA

I wanted to thank you for the cost segregation and energy tax work you have done for several of the firm’s clients. The results have been very favorable and have resulted in significant tax benefits. You have a very talented team, and I look forward to working with you more in the future.

Lewis B. Kevelson, CPA Partner Rachlin LLP

We worked with ETS for the first time in 2009. They performed an Energy Tax Certification for our firm that resulted in a $74,000 tax deduction, which meant about $20,000 actual cash back to us. The staff was knowledgeable and friendly and took the time to explain and guide us through the process. While inevitable bumps delayed the report by about a week, we anticipate working with ETS on more projects in the future. We highly recommend ETS and look forward to our enhanced profitability as a res…

Jeffrey T. Wade Principal | ADD Inc.

I would like to take the opportunity to offer a formal recommendation for Engineered Tax Services. As the CEO for The Fuoco Group, I have worked with Engineered Tax Services for approximately two years and feel that they are the best in the business in terms of providing cost segregation and energy tax services. They are a true partner that opened our eyes to how to bring significant tax benefits to our real estate clients while generating significant income for our firm through leveraging our c…

Fuoco Group, LLP

Bonavista Holdings, Inc. is a real estate holding company with approximately 1,000,000 square feet of commercial space located primarily in Broward and Palm Beach Counties. Our firm engaged Engineered Tax Services to perform a cost segregation study on our behalf. I received a favorable result that exceeded all of my expectations. I found Mr. Gonzalez to be extremely competent, thorough, and knowledgeable of the subject matter. I had used other firms to do similar work previously, and none compa…

Bonavista Holdings, Inc.

Engineered Tax Services has been a very valuable engineering resource to our firm over the past decade. We find their firm the only licensed engineering firm to be uniquely qualified to handle the complex issues regarding cost segregation, 263a, 179D and repair and maintenance. We did our due diligence and the results speak for themselves as Engineered Tax Services is the dominant engineering resource to the CPA community.

Goldstein Schecter Kosh

CTA Architect Engineers, after thorough research, engaged Engineered Tax Services (ETS) for qualifying services under the Energy Policy Act of 2005 (179D). The proficient and highly competent services provided by ETS met or exceeded our expectations, and those of our CPA, in each of the final reports. CTA has enlisted ETS’s services on several projects and will continue to use them for these 179D certifications.

AIA LEED-AP BD+C CTA Architect Engineers

The Cost Segregation Study was very effective in reducing the state taxes as well as federal tax liability.

Find out how much you qualify for through a complimentary benefit analysis

We would appreciate the opportunity to speak with you personally when your calendar permits. If you are open to a brief 10-minute phone call with either our CEO or one of our managing directors, please complete the form below, and someone will contact you to schedule a call.